US economic growth accelerated to an annual rate of 3.4% in the second quarter of 2007, according to US government figures.
In its first estimate, the Commerce Department said growth picked up after a 0.6% rate in the first quarter.
The Q2 figures was the strongest since the first quarter of 2006 and slightly ahead of the average Wall Street estimate.
The higher growth rate came from an improving global trade picture, including higher exports, while consumer spending cooled. Exports grew 6.4% while imports fell 2.6%, amid sharp declines in the US dollar.
Consumer spending, which accounts for two-thirds of economic activity was a lesser factor. Spending increased just 1.3%, the weakest since late 2005, compared with 3.7% in the first quarter.
The housing slowdown was much less of a drag on the economy in the second quarter, as real residential fixed investment fell 9.3%, not as steep as the 16.3% drop in Q1.
The inflation figures in the report were mixed. The personal consumption expenditure (PCE) price index linked to GDP showed a 4.3% pace of increase. But the 'core' rate, preferred by the Federal Reserve, rose 1.4% in the second quarter, down sharply from the 2.4% rise in Q1 and the slowest since the second quarter of 2003.
